What is the percentage price change of bonds

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The Faulk Corp. has a bond with a coupon rate of 5 percent outstanding. The Gonas Comapny has a bond with a coupon rate of 11 percent outstanding. Both bonds have 14 years to maturity, make semiannual payments, and have a YTM of 8 percent.

If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).)

  Percentage change in price of Faulk Corp. bond %  

  Percentage change in price of Gonas Co. bond %

What if rates suddenly fall by 2 percent instead? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).)

  Percentage change in price of Faulk Corp. bond %  

  Percentage change in price of Gonas Co. bond %

Reference no: EM131869707

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